ECON2150 Midterm 2 With Complete Solutions
MC > AC - ANSWER what is the relationship between MC and AC when there is
decreasing returns?
MC = AC - ANSWER what is the relationship between MC and AC when there is
constant returns?
MC < AC - ANSWER what is the relationship between MC and AC when there is
increasing returns?
increasing returns - ANSWER what type of return has no maximizers?
decreasing returns - ANSWER what supply function is a linear increasing line?
constant returns - ANSWER what supply function is a horizontal straight line?
increasing returns - ANSWER what supply function does not exist?
wages/profits and consumption goods - ANSWER in the relationship between
consumers and firms, what do firms provide to consumers?
expenditure and labour time/entrepreneurship - ANSWER in the relationship between
consumers and firms, what do consumers provide to firms?
general equilibrium model - ANSWER An economic model that studies the behaviour of
all producers, consumers, and traders simultaneously.
, partial equilibrium model - ANSWER An economic model of a single market
x of consumer #1 + x of consumer #2 - ANSWER what is the combined demand
formula?
x of consumer #1 + x of consumer #2 - ANSWER what is the combined supply formula
for decreasing returns?
x of consumer #1 OR x of consumer #2 (whichever x is lower) - ANSWER what is the
combined supply formula for constant returns?
none because increasing returns have no supplys - ANSWER what is the combined
supply formula for increasing returns?
Pd = Ps + tax - ANSWER Tax formula?
xd = xs - ANSWER for a tax, what are the two equal variables?
A + B + E - ANSWER For a tax, what is the original CS?
C + D + F - ANSWER For a tax, what is the original PS?
A - ANSWER For a tax, what is the new CS?
D - ANSWER For a tax, what is the new PS?
B + C - ANSWER For a tax, what is the GR?
E + F - ANSWER For a tax, what is the DWL?
MC > AC - ANSWER what is the relationship between MC and AC when there is
decreasing returns?
MC = AC - ANSWER what is the relationship between MC and AC when there is
constant returns?
MC < AC - ANSWER what is the relationship between MC and AC when there is
increasing returns?
increasing returns - ANSWER what type of return has no maximizers?
decreasing returns - ANSWER what supply function is a linear increasing line?
constant returns - ANSWER what supply function is a horizontal straight line?
increasing returns - ANSWER what supply function does not exist?
wages/profits and consumption goods - ANSWER in the relationship between
consumers and firms, what do firms provide to consumers?
expenditure and labour time/entrepreneurship - ANSWER in the relationship between
consumers and firms, what do consumers provide to firms?
general equilibrium model - ANSWER An economic model that studies the behaviour of
all producers, consumers, and traders simultaneously.
, partial equilibrium model - ANSWER An economic model of a single market
x of consumer #1 + x of consumer #2 - ANSWER what is the combined demand
formula?
x of consumer #1 + x of consumer #2 - ANSWER what is the combined supply formula
for decreasing returns?
x of consumer #1 OR x of consumer #2 (whichever x is lower) - ANSWER what is the
combined supply formula for constant returns?
none because increasing returns have no supplys - ANSWER what is the combined
supply formula for increasing returns?
Pd = Ps + tax - ANSWER Tax formula?
xd = xs - ANSWER for a tax, what are the two equal variables?
A + B + E - ANSWER For a tax, what is the original CS?
C + D + F - ANSWER For a tax, what is the original PS?
A - ANSWER For a tax, what is the new CS?
D - ANSWER For a tax, what is the new PS?
B + C - ANSWER For a tax, what is the GR?
E + F - ANSWER For a tax, what is the DWL?
